Kenyan car importers are up in arms following a significant revision by the Kenya Revenue Authority (KRA) that has sharply increased import duty charges for used motor vehicles. The new Current Retail Selling Price (CRSP) template, set to take effect on July 1, 2025, will see some car models attract nearly double the previous taxes, drastically raising the cost of vehicle ownership for many Kenyans.
Under the revised CRSP, popular models such as the Toyota Vitz Hybrid will see duty charges soar from Ksh.319,501 to Ksh.508,927. The diesel variant of the Mazda Demio, often favored for its fuel efficiency, will now cost approximately Ksh.3.8 million after a duty hike from Ksh.244,000 to Ksh.564,000. Similarly, the Mazda CX5 (2L petrol) will see duties rise from Ksh.721,500 to Ksh.1.07 million.
Other significant increases include the Toyota Fielder, with duties jumping from Ksh.362,300 to Ksh.568,500, and the Subaru Forester XT, which moves from Ksh.669,300 to Ksh.812,100. Toyota Axio’s tax obligations also rise from Ksh.457,600 to Ksh.539,900.
Interestingly, a few high-end models will benefit from reduced duties. The luxury Lexus LX570 will see its tax drop from Ksh.4.2 million to Ksh.3.3 million, while the Volkswagen Tiguan 1.4L sees a revision from Ksh.652,000 to Ksh.531,300.
KRA says the new template accounts for vehicle models not included in the outdated 2019 CRSP and aims to curb undervaluation, ensuring appropriate taxation. Currently, vehicles are taxed based on a combination of import duty (35%), excise duty (25%-35%), VAT (16%), Import Declaration Fee (3.5%), and Railway Development Levy (2%), all calculated on a customs value derived from a depreciation rate between 10% and 65%.
However, importers have criticized the taxman for failing to consult stakeholders through public participation. They argue that the steep increases will force many Kenyans to reconsider importing second-hand vehicles, potentially affecting the used car market and affordability.
As the July 2025 implementation date approaches, the automotive industry faces uncertainty, with dealers and buyers alike grappling with the looming cost implications.
